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E-Trade for All a collaborative initiative to Unlock the Potential of E-commerce for Developing Countries WTO Public Forum How can ACP countries harness digital innovation as critical enabler for promoting inclusive trade Geneva, 27 September 2016

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Page 1: E-Trade for All - fes-geneva.org · – B2B in 2015: $20 trillion, up from $15 trillion in 2013 – B2C in 2015: $2.2 trillion, up from $1.2 trillion in 2013 • Online shoppers in

E-Trade for All

a collaborative initiative to Unlock the Potential of E-commerce for

Developing Countries

WTO Public ForumHow can ACP countries harness digital innovation as critical

enabler for promoting inclusive tradeGeneva, 27 September 2016

Page 2: E-Trade for All - fes-geneva.org · – B2B in 2015: $20 trillion, up from $15 trillion in 2013 – B2C in 2015: $2.2 trillion, up from $1.2 trillion in 2013 • Online shoppers in

Launched at UNCTAD 14

We welcome the formal unveiling of the eTrade for All initiative at UNCTAD XIV. It provides a new approach to trade development through electronic exchanges by allowing developing countries to more easily navigate the supply of technical assistance for building capacity

in e-commerce readiness and for donors to get a clear picture of programmes that they could fund.

Nairobi Azimio

Page 3: E-Trade for All - fes-geneva.org · – B2B in 2015: $20 trillion, up from $15 trillion in 2013 – B2C in 2015: $2.2 trillion, up from $1.2 trillion in 2013 • Online shoppers in

E-Commerce, Trade and Development

• Beginning of the digital era• Goods and services increasingly traded online• E‐commerce is crucial for SMEs (B2B and B2C) to

– access new markets (domestic and exports)– participate in value chains

• Expanding opportunities as a result of:– Improved ICT connectivity– New e‐commerce platforms and solutions– Rise of new e‐commerce companies in developing countries  

• Transformational → both opportuni es and challenges

Page 4: E-Trade for All - fes-geneva.org · – B2B in 2015: $20 trillion, up from $15 trillion in 2013 – B2C in 2015: $2.2 trillion, up from $1.2 trillion in 2013 • Online shoppers in

Global e-commerce is growing rapidly

• New UNCTAD estimates:– B2B in 2015: $20 trillion, up from $15 trillion in 2013– B2C in 2015: $2.2 trillion, up from $1.2 trillion in 2013

• Online shoppers in top 10 e‐commerce markets: from 600 million (2013) to 850 million (2015)

• Most of this involves domestic sales but cross‐border e‐commerce is expected to grow fast.

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…but e-commerce divide is still hugeShare of individuals purchasing online 2013

Source: UNCTAD, based on Eurostat, ITU and national data (in red).

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Top 10 ACP countries in the B2C E-Commerce Index, 2016

2016 Rank Economy

Share of individuals 

using Internet‐ITU data (2014 

or latest)

Share of individuals 

with credit card World Bank 

data (15+, 2014 or latest)

Secure Internet servers per 1 million people World Bank data(normalized, 

2014)

UPU postal reliability 

score (2013‐14)

UNCTAD B2C e‐commerce Index value 

2015

2014 Rank

61 South Africa 49 13 72 67 50.3 67

66 Jamaica 41 14 66 70 47.6 80

67 Trinidad & Tobago 65 15 71 39 47.5 43

70 Mauritius 41 17 74 51 45.9 54

83 Dominican Republic 50 11 60 39 39.9 57

85 Botswana 19 10 52 74 38.6 109

86 Kenya 43 5 49 54 37.9 112

91 Senegal 18 1 42 73 33.4 110

99 Ghana 19 1 42 60 30.5 108

100 Nigeria 43 3 38 38 30.4 100

Page 7: E-Trade for All - fes-geneva.org · – B2B in 2015: $20 trillion, up from $15 trillion in 2013 – B2C in 2015: $2.2 trillion, up from $1.2 trillion in 2013 • Online shoppers in

Internet shoppers variations2014

EconomyAs % of Internet users

As % of population Total, millions

Denmark 81 78 3.65Ghana 6 1 0.19Kenya 16 5 1.2Mauritius 14 7 0.07Nigeria 11 4 3.83South Africa 14 6 2.3Tanzania, United Republic of 15 3 0.77Uganda 4 1 0.1

Source: Mauritius Stat, Pew and EUROSTAT

Page 8: E-Trade for All - fes-geneva.org · – B2B in 2015: $20 trillion, up from $15 trillion in 2013 – B2C in 2015: $2.2 trillion, up from $1.2 trillion in 2013 • Online shoppers in

Many barriers to e-commerce uptakeUrgent need for capacity-building and assistance

• Limited use of the Internet among businesses and consumers• Lack of awareness among governments and regulators• Concerns about possible adverse effects• Insufficient access to affordable ICT infrastructure• Inadequate trade logistics and facilitation• Lack of security and trust in online transactions• Inadequate online payment facilities• Lack of trade finance• Limited e‐commerce skills among enterprises• Absence of statistical data on e‐commerce• Weak legal and regulatory frameworks

Page 9: E-Trade for All - fes-geneva.org · – B2B in 2015: $20 trillion, up from $15 trillion in 2013 – B2C in 2015: $2.2 trillion, up from $1.2 trillion in 2013 • Online shoppers in

Purpose and scope of E-Trade for All

• Multi‐stakeholder initiative among public and private parties who can contribute to achieving significant improvements in the ability of countries to use and benefit from e‐commerce, by: – raising awareness of countries' unique opportunities, challenges and 

constraints to e‐commerce; – mobilizing and rationalizing available financial and human resources 

for the implementation of projects that would address those challenges and constraints; and 

– strengthening coherence and synergies among partner activities to further the use and gains from e‐commerce in developing countries. 

Page 10: E-Trade for All - fes-geneva.org · – B2B in 2015: $20 trillion, up from $15 trillion in 2013 – B2C in 2015: $2.2 trillion, up from $1.2 trillion in 2013 • Online shoppers in

Creating synergies through collaboration

• Developing innovative development solutions to catalyze e‐commerce

• Pooling capabilities leveraging each partner's strengths• Developing joint and complementary initiatives• Preparing joint studies, surveys and knowledge products• Drawing on private sector inputs and promoting PPPs• Sharing data related to e‐commerce• Project evaluation and monitoring to assess “what works”

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Founding partnersfrom governments and international organizations

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Business for eTrade Developmenta Private Sector Advisory Council

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Next steps

• Design the eTrade For All Web Portal (September‐December2016)

• Collate information on the demand for support for e‐commerce‐related activities among developing countries

• Collate information on projects and programmes that can support e‐commerce development

• E‐Commerce Week April 2017:– First Global Meeting of the Partners– Meeting of the Business for eTrade Development

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unctad.org/[email protected]